Gift Annuity

Shared Values...Life Planning through a Bethany Charitable Gift Annuity

What is a Bethany Charitable Gift Annuity?
A Charitable Gift Annuity is a life-planning tool that allows you to give and receive. You provide a gift in the form of cash, appreciated property, and stocks or bonds and, in turn, you receive:

  • Peace of mind through a fixed annual income for life.
  • Personal satisfaction, as you demonstrate your love for children through Bethany’s mission.
  • Potential tax savings if you itemize your federal income tax return.
  • Progressive annuity rates: the older you are, the higher the rate of return.
  • Preferential payment schedules, as you choose the frequency of your payments.
How does a Bethany Charitable Gift Annuity work?
The lifetime income and potential tax savings you realize depend on the amount of the gift, your age, and whether the contract is for one person or two people. You may also choose a Deferred Charitable Gift Annuity option, which delays payments until later in life and offers a higher interest rate. This may be a sensible retirement planning tool for people under 60 years of age.

Single-Life Charitable Gift Annuity Example
Mrs. Miller, an 85-year-old widow, would like to enter a Charitable Gift Annuity contract with Bethany Christian Services and receive income for the rest of her life.

She has $10,000 in a CD earning a low rate of return and decides to fund her CGA with that money. In exchange for her $10,000 Charitable Gift Annuity, she receives:
  • $810.00 per year income on an age-based annuity rate of 8.1%.
  • A charitable deduction of $5,405.44 on her federal income tax (if applicable).
  • $675.54 of her annual payment is tax-free income.
Two-Life Charitable Gift Annuity Example
Mr. and Mrs. Russell, ages 75 and 73, have supported Bethany since their grandson was adopted 11 years ago. They now wish to enter a Charitable Gift Annuity in the amount of $10,000 funded by some long-held, publicly-traded stock.

This arrangement provides them with:
  • A lifetime income for both, totaling $550 annually, based on a two-life interest rate of 5.5%.
  • A charitable deduction of $2,816.67 on their federal income tax.
  • Potential capital gains tax reduction.
  • Partial tax-free income through their annuity payments.
Pursue your passion for Bethany’s mission.
Contact us for a personal illustration of how a Charitable Gift Annuity will benefit you.

Bethany’s Office of Planned Giving is a ministry by which we assist individuals in thoughtfully preparing for their future. This includes information about Wills, Trusts, and charitable gift planning. We hope that these services will help you extend your influence for Christ around the world and far into the future.